No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Five: Supply & Demand: Markets at Work 107 INTRODUCTION As noted in our biblical preface to this chapter, markets are just the way we think about the collective action of many, many individuals. Individuals “truck, barter and exchange” wherever they are free to do so. You give me this, and I’ll give you that—that’s the way markets work. Markets are the defining feature of what Karl Marx derisively called “capitalism.” We don’t need to use Karl Marx’s intended pejorative (negative) term capitalism; we can just think of a system of economic freedom. That’s all “ laissez faire ” capitalism and markets represent: the ability of any individual to trade their private property with others, with no third party able to interfere. This could be trading services for goods, goods for goods, or services for services. Economic freedom says you are free to do what you want with what is yours, although you will pay any opportunity cost. Similarly, Christian stewardship says you are free to do what you want with the resources God puts under your control, but you will be held accountable (Matthew 25:14-30 )! We begin to see that economic freedom and Christian stewardship are not only compatible, but they are interlinked. For us to grow as Christians, we must increasingly think God’s thoughts after Him, and act according to His imputation of value. The exercise of Godly stewardship of economic resources is enhanced with economic freedom and the freedom to choose. Inherent in the concept of freedom is the reality that sometimes we will choose wisely and sometimes we won’t. MATTHEW 20:8-15 8 When evening came, the owner of the vineyard said to his foreman, ‘Call the workers and pay them their wages, beginning with the last ones hired and going on to the first.’ 9 The workers who were hired about the eleventh hour came and each received a denarius. 10 So when those came who were hired first, they expected to receive more. But each one of them also received a denarius. 11 When they received it, they began to grumble against the landowner. 12 ’These men who were hired last worked only one hour,’ they said, ‘and you have made them equal to us who have borne the burden of the work and the heat of the day.’ 13 But he answered one of them, ‘Friend, I am not being unfair to you. Didn’t you agree to work for a denarius? 14 Take your pay and go. I want to give the man who was hired last the same as I gave you. 15 Don’t I have the right to do what I want with my own money? Or are you envious because I am generous? Now, this parable goes well beyond economic freedom, outlining the relationship of both Jews and Gentiles and how God chooses to bless both groups according to his mercy—which he is free to bestow (or not) on anyone he chooses (see also Romans 9:14-15 ). But the broader purpose of God should not cause us to miss the crucial reason The exercise of Godly stewardship of economic resources is enhanced with economic freedom and the freedom to choose. “Laissez-faire” capitalism: an economic system where individuals are free to produce and trade consistent with their private property rights, with no interference from others or the government. The government’s role in this economic system is to secure property rights by restricting violence, enforcing contracts, and punishing fraud.